Conspicuous Leisure: Optimal Income Taxation When Both Relative Consumption and Relative Leisure Matter

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In previous studies on public policy under relative-consumption concerns, leisure comparisons have been ignored. In this paper, we consider a two-type optimal non-linear income tax model, in which people care about both their relative consumption and their relative leisure. Increased consumption positionality typically implies higher marginal income tax rates for both ability types, whereas leisure positionality has an offsetting role.

Policy Design

A fair share: Burden-sharing preferences in the United States and China

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Using a sequential discrete choice experiment, we investigate preferences for distributing the economic burden of reducing CO2 emissions in the two largest CO2-emitting countries: the United States and China.

Climate Change
Environmental Economics Unit (EEU)

The Natural Forest Protection Program in China: A contingent valuation study in Heilongjiang province

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In 1998 the Chinese government implemented the Natural Forest Protection Program, NFPP, which included logging restrictions, protected areas, replanting, and a range of other policies aimed at safeguarding the state of the country’s forests and reducing the risk of erosion and flooding.

Forestry

The effect of religiosity and religious festivals on positional concerns – an experimental investigation of Ramadan

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This article examines the effect of religion on positional concerns using survey experiments. We focus on two of the dimensions of religion – degree of religiosity and religious festivals. By conducting the experiments during both the most important day of Ramadan (the Night of Power) and a day outside Ramadan, we find that Ramadan overall has a small and negative impact on positional concerns.

Experiments

Realizing REDD+: what role for Payments for Environmental Services?

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This Brief presents a framework that can be used to assess the potential impact of Payments for Environmental Services (PES) schemes.

Factors that determines the impact of PES are discussed such as additional forest conservation through targeted payments and the risk for unintended incentives and consequences and feelings of injustice among those who don´t receive payments. The brief further discuss the role for PES in national REDD+ policy.

Experiments, Climate Change, Conservation, Forestry, Policy Design